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An Invitation to Invest in Tourism Development in Padang City, West Sumatra Province, Republic of Indonesia INDONESIA TOURISM INVESTMENT INVITATION
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An Invitation to Invest in Tourism Development in

Padang City,

West Sumatra Province,

Republic of Indonesia

INDONESIA TOURISM INVESTMENT INVITATION

INDONESIA TOURISM INVESTMENT INVITATION

Welcome to the Republic of Indonesia

The Land of Smiles . . .

Presenting:

Padang City,

West Sumatra Province

Our missions are:

1. Promoting the best of Indonesia’s tourism development projects;

2. Informing both international and domestic; investors, developers, operators, and

visitors about investment opportunities on Indonesia tourism development ;

3. Providing guidance for the investors about the comprehensive investment services

that are being offered by the Ministry’s partners, including the Indonesia

Investment Coordinating Board.

Page1 | 17

An Invitation to Invest in Tourism Development in

Padang City,

West Sumatra Province,

Republic of Indonesia

INDONESIA TOURISM INVESTMENT INVITATION

LOCATION

Page2 | 17

Republic of Indonesia Location

West Sumatra Province Location

Padang City Location

INDONESIA TOURISM INVESTMENT INVITATION

GEOGRAPHY

Capital City : Kototangah

Time Zone : WIB (UTC+7)

Coordinate : N 01°57'2.76" E 100°21'41.64"

Area Width : ± 694,93 km2

Borders : North : Padang Pariaman Regency

West : Mentawai Strait

South : Pesisir Selatan Regency

East : Solok Regency

Air Temperature : 23,1-31,8 °C

Relative Humidity : 71-97 %

DEMOGRAPHICS

Population : 914,968 (2016)

Density : 1,327/km²

Labour Force : 40,140

Ethnic Group : Minang , Javanese

Religion : Islam, Hindu, Buddhist, Christian and Catholic

Language : Indonesian (official) and Minang (local language)

BUSINESS ENVIRONMENT

In 2016, Padang City’s economy was improving, indicated by the increase of GDRP of

around 6% from the preceding year. The economic structure in Padang City was

dominated by wholesale and retail trade; also repair of motor vehicles and motorcycles

sector. This sector contributed around 16.71% to the total GDRP, followed by

transportation and storage sector by 16.11%, manufacturing sector by 14.86%,

followed by construction by 10.06% and accommodation and food service activities by

1.38%.

Page3 | 17

INDONESIA TOURISM INVESTMENT INVITATION

INFRASTRUCTURE

Transportation

Padang City’s transportation system consists mainly of road and rail transport. Land

transportation infrastructure supported by the network of national, provincial and

regency levels. Rail transportation infrastructure supported by Sibinuang train that

serves the Padang-Pariaman corridor. This train is under the control of Regional

Division II of West Sumatra. This train carries out Padang-Pariaman trip four times a

day. Overall, the existing transportation infrastructure has reached almost all parts of

Padang City.

Telecommunication

Telecommunication infrastructure has been well implemented and have covered the

entire city with and are easily accessible.

Energy

Provision of electricity is served by the State Electricity Enterprise or Perusahaan

Listrik Negara (PLN) of West Sumatra Province, Padang Branch. The power production

capacity is 55,300 MWH.

Water

Clean water was obtained from surface water sources and underground water sources.

The surface water was garnered from 6 river that flows in this area and supplying

Regional Water Company (PDAM) of Padang City.

Page4 | 17

INDONESIA TOURISM INVESTMENT INVITATION

TOURISM FACTS

ATTRACTION

Padang is the capital and largest city of West Sumatra. This city in one of the top tourist

destination and became point of transit and transport hub for travellers visiting tourist

attractions around West Sumatra. Rendang which is listed number one dish in “The

World’s 50 Most Delicious Foods” by CNN International in 2011 originated from this

place. As a top tourist destination in West Sumatra, Padang also have several famous

tourist attractions, which are:

1. Padang Old Town

Padang Old Town, or Padang Lama, is the old part of Padang lined with colonial

Dutch buildings that are standing along Batang Arau River. The harbor along the

river was once a very important port until the 19th century. Across the river is

Padang Hill, the first settlement before Padang developed into a town. The buildings

now are used as warehouses for spices. Chinatown can be found on the west side of

Padang Old Town, also adorned with old buildings including an old Buddhist temple

with Chinese architecture, over 200 years old.

2. Air Manis Beach

Air Manis Beach or Sweet Water Beach with brown-white sand is located 10kms

south of Padang. When the tide is low, Pulau Pisang Ketek (Small Banana Island)

which is 200 meters across the shore can be easily reached by foot. There are many

rock formations, one of them is the legend Malin Kundang Stone formations, are

found here. The legend of Malin Kundang states that he was cursed for the denial of

his own mother. Air Manis Beach is a perfect place to learn surfing. Air Manis Beach

is within a secluded bay surrounded by forested hills. It only takes 30 minutes to get

to from Padang.

3. Padang Hill and Siti Nurbaya Park

Across the Arau River is Siti Nurbaya Park which can be reached by bridge or boat.

Remains of Japanese canons and bunkers from World War II are a familiar sight in

the area. The place offers a great views over Padang city, Arau River and the Indian

oceans.

Page5 | 17

INDONESIA TOURISM INVESTMENT INVITATION

4. Adityawarman Museum

The Adityawarman is situated in the center of Padang. This museum was built

in 1976 and inaugurated on 16 March 1977 by then the Cultural and Education

Minister, Prof. Dr. Syarief Thayeb.  Adityawarman Museum occupies an area of 2.5

hectares, and it is surrounded by a spacious and neatly laid out garden. This

museum collects 6,000 Minangkabau relics, which are classified into

Geological/Geographical, Biological, Ethnographical, Archaeological, Historical,

Numismatic/Heraldic, Philological, Ceramology (all kind of objects that made from

ceramic), 3-dimension Art, and technological. All collections are housed in a large

traditional Minangkabau house that lies in front of two rice barns (also known as

Rangkiang in West Sumatera dialect).

ACCESSIBILITIES

Padang City is relatively easy to reach by both domestic and international tourist. The

main entry is through Minangkabau International Airport located north-west of Padang

City, in Ketaping, Padang Pariaman Regency. Minangkabau International Airport is one

of the 4 international airports in Sumatra with flights directly from Singapore, Penang

and Kuala Lumpur. From the Minangkabau International Airport, tourist can reach

Padang City via land transport. The total distance between the Minangkabau

International Airport and Padang City is around 23 Km, which takes around 30 minutes

by car.

Page6 | 17

INDONESIA TOURISM INVESTMENT INVITATION

REGIONAL TOURISM POLICY

TOURISM POSITION ON REGIONAL DEVELOPMENT

Tourism has become one of the main priority sector for development by the local

government. The government and the community have fully aware of the Padang City

tourism resources and its potential for economic contribution through tourism

development. They are welcoming investors that are willing to cooperate not only on

developing more tourism attraction and facilities but also to develop in all of tourism

aspects of Padang City.

REGIONAL TOURISM DEVELOPMENT OBJECTIVE

The tourism development at the West Sumatra must be implemented in compliance

with the following principles:

1. Community based tourism

Maintain the involvement of the local community and the stakeholders on every

tourism development activities

2. Sustainable tourism

Continuous improvement and preservation of the environmental, cultural and

community aspects of tourism development

3. Cultural preservation

Implement and integrate the local culture elements on all of the tourism

development activities

4. Collaborative cooperation between stakeholders

Cooperate and accommodate all of the stakeholder’s aspirations

Page7 | 17

INDONESIA TOURISM INVESTMENT INVITATION

INVESTMENT OPPORTUNITIES

Air Manis Beach

Page8 | 17

INDONESIA TOURISM INVESTMENT INVITATION

1. Located at Air Manis Sub-District, South Padang District, Padang City, West

Sumatra, Indonesia

2. Location Coordinate : S 0°59'23.71" E 100°21'38.19"

3. Location Width : ± 5 ha

4. Land Owner: Government

5. Tourism Business Opportunities (including the investment code of the Standard

Classification of Indonesian Business Fields for Tourism):

a. 1 unit of Three Star Hotel (5511) with 80 rooms.

Estimated required initial funds: IDR 44 Billion (Excluding land lease, license

and permit fees)

b. 1 unit of Restaurant (56101)

Estimated required initial funds: IDR 5 Billion (Excluding land lease, license

and permit fees)

c. 2 units of Café (56303)

Estimated required initial funds: IDR 2.5 Billion (Excluding land lease, license

and permit fees

6. Available cooperation

Investors are encouraged to invest in partnership with the local government

through the following cooperation:

a. Build, Operate and Transfer (BOT)

b. Joint Venturec. Other agreeable cooperation forms

Page9 | 17

INDONESIA TOURISM INVESTMENT INVITATION

Ex. Hotel Batang Arau (Spaar Bank) Building

Page10 | 17

INDONESIA TOURISM INVESTMENT INVITATION

1. Located at Batang Arau Street, Batang Arau Sub-District, West Padang District,

Padang City, West Sumatra, Indonesia

2. Location Coordinate : S 0°57'47.50" E 100°21'46.08"

3. Location Width : ±

● GF 21,8 x 21,25 m2

● F1 21,8 x 21,25 m2

4. Land Owner: Local communities

5. Tourism Business Opportunities (including the investment code of the Standard

Classification of Indonesian Business Fields for Tourism):

a. 1 unit of Boutique Hotel (5511)

Estimated required initial funds: IDR 30 Billion (Excluding land lease, license

and permit fees)

6. Available cooperation

Investors are encouraged to invest in partnership with the local government

through the following cooperation:

a. Sub-leaseb. Joint Venturec. Other agreeable cooperation forms

Page11 | 17

INDONESIA TOURISM INVESTMENT INVITATION

Geo Wehry & Co Building

Page12 | 17

INDONESIA TOURISM INVESTMENT INVITATION

1. Located at Batang Arau Street, Tanah Kongsi Sub-District, West Padang District,

Padang City, West Sumatra, Indonesia

2. Location Coordinate : S 0°57'51.58" E 100°21'34.15"

3. Location Width :±

● GF 24x35 m2

● F1 24x35 m2

4. Land Owner: Panca Niaga Company

5. Tourism Business Opportunities (including the investment code of the Standard

Classification of Indonesian Business Fields for Tourism):

a. 1 unit of Restaurant (56101)

Estimated required initial funds: IDR 20 Billion (Excluding land lease, license

and permit fees)

6. Available cooperation

Investors are encouraged to invest in partnership with the local government

through the following cooperation:

a. Sub-leaseb. Joint Venturec. Other agreeable cooperation forms

Page13 | 17

INDONESIA TOURISM INVESTMENT INVITATION

Ex. De Javas Bank (Bank Indonesia) Building

Page14 | 17

INDONESIA TOURISM INVESTMENT INVITATION

1. Located at Batang Arau Street, Nipah Sub-District, West Padang District, Padang

City, West Sumatra, Indonesia

2. Location Coordinate : S 0°57'52.26" E100°21'30.12"

3. Location Width :± 22,75 x 19,5 m2

4. Land Owner: Bank Indonesia

5. Tourism Business Opportunities (including the investment code of the Standard

Classification of Indonesian Business Fields for Tourism):

a. 1 unit of Art Gallery (90001)

Estimated required initial funds: IDR 25 Billion (Excluding land lease, license

and permit fees)

6. Available cooperation

Investors are encouraged to invest in partnership with the local government

through the following cooperation:

a. Sub-leaseb. Joint Venturec. Other agreeable cooperation forms

INVESTMENT OPPORTUNITIES SUMMARY

Business

Fields

Amount

Needed

Required Funds Per

Business Field

Total Required Fund

Per Business Field

Category

Air Manis BeachThree Star Hotel 1 IDR 44 Billion IDR 44 Billion

Restaurant 1 IDR 5 Billion IDR 5 Billion

Cafe 2 IDR 2.5 Billion IDR 5 Billion

Total Required Fund (Excluding Land Lease, License and Permit)

IDR 54 Billion

Padang Old TownBoutique Hotel 1 IDR 30 Billion IDR 30 Billion

Restaurant 1 IDR 20 Billion IDR 20 Billion

Art Gallery 1 IDR 25 Billion IDR 25 Billion

Total Required Fund (Excluding Land Lease, License and Permit)

IDR 75 Billion

Total Required Fund in the Region (Excluding Land Lease, License and Permit)

IDR 129 Billion

Page15 | 17

INDONESIA TOURISM INVESTMENT INVITATION

Welcome to Padang CityTourism Investment Zones . . .

Deputy for the Development of Destinations and Tourism Industry

Ministry of Tourism, Republic of Indonesia

Sapta Pesona Building, 4th Floor, Medan Merdeka Barat Street No. 17

Central Jakarta, 10110

Contact us:

Phone: +62(0) 21 383 8040

E-Mail: [email protected]

Website: www.indonesia-tourism-investment.com

www.indonesia.travel

Page16 | 17


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